1 Contents
1. Introduction ................................ ................................ ................................ ............................... 3
2. Program Financing ................................ ................................ ................................ ...................... 3
2.1. Qualified Applicants ................................ ................................ ................................ ................. 4
2.2. Funding Sources ................................ ................................ ................................ ....................... 4
2.3. Tax Increment Financing Example ................................ ................................ ............................ 4
3. Economic Opportunity Areas ................................ ................................ ................................ ...... 5
3.1. Downtown Economic Opportunity Area ................................ ................................ ................... 6
3.2. South Hwy 58/Airport Economic Opportunity Area ................................ ................................ 76
3.3. Highway 99 Corridor Opportunity Area ................................ ................................ .................. 87
3.4. 34th Street Corridor Opportunity Area ................................ ................................ ................... 98
3.5. East Hills Opportunity Area ................................ ................................ ................................ .. 108
3.6. Old Town Kern Opportunity Area ................................ ................................ ......................... 109
3.7. Southeast Opportunity Area ................................ ................................ ................................ . 119
4. Financial Incentives ................................ ................................ ................................ .............. 1210
4.1. Site Improvement/Rehabilitation Grant ................................ ................................ ............. 1210
4.2. Business Relocation/Expansion Grant ................................ ................................ ................. 1310
4.3. Development Assistance ................................ ................................ ................................ .... 1311
4.4. Small Business Loans ................................ ................................ ................................ .......... 1311
5. Implementation Strategy ................................ ................................ ................................ ...... 1411
5.1. Resolution Approving the Economic Opportunity Areas ................................ ..................... 1411
5.2. Program Guidelines ................................ ................................ ................................ ............ 1412
5.3. California Prevailing Wage................................ ................................ ................................ .. 1612
5.4. Approval of Economic Development Activities ................................ ................................ ... 1612
5.5. Continual Transparency ................................ ................................ ................................ ..... 1613
2 ATTACHMENTS
A. Map - Overall Economic Opportunity Areas
B. Assessed Values (20192 – 202219)
C. Map -– Downtown Economic Opportunity Area
D. Map -– South Hwy 58/Airport Economic Opportunity Area E. Map - Hwy 58/Mt. Vernon Economic Opportunity Area
F.E. Map -– 34th Street Corridor Economic Opportunity Area G.F. Map -– East Hills Economic Opportunity Area
H.G. Map – Old Town Kern Economic Opportunity Area
H. Map -– Southeast Economic Opportunity Area
I. Map – 99 Hwy Corridor Economic Opportuity Area
I.J. Map – Qualified Census Tracts
3 1. Introduction
The City of Bakersfield’s Economic Opportunity Area Plan (EOA Plan) is a locally initiated program that uses tax increment financing and local sales tax revenue and other public funds to promote economic growth within specific geographic areas of Bakersfield. The program modeled in part , after State redevelopment concepts and structured to be more flexible so it can meet demands of specific areas within the City . Implementation of th e Plan is anticipated to facilitate increased private sector investment that will in turn create more tax revenue, promote businesses growth, and generate new jobs.
The Plan outlines the concept of Tax Increment Financing and the use of local financing as a commitment to revitalize specific areas. Next, the Plan addresses the concept of Economic Opportunity Areas (EOAs) , including a description of seven EOAs to be implemented, along with respective economic development activities to be purs ued. Finally, the Plan lays the framework for implementation and the review process to ensure that the economic development activities align with the City Council’s priorities.
In November 2018, City voters approved the Public Safety and Vital Services (PSVS) m easure. The investment priorities for the measure align with the EOA Plan such as:
Keeping public areas safe and clean.
Addressing the fiscal stability of the City.
Creating jobs through economic development, business retention/ attraction and workforce development.
Enhancing amenities throughout the community to improve the quality of life and attract visitors.
Therefore, initial investment for PSVS funding is proposed for each designated will support EOA for implementation of EOA programs that address the investment priorities.
In 2021, the City was awarded Coronavirus State and Local Fiscal Recovery Funds (SLFRF), established under the American Rescue Plan Act (ARPA). City Council approved a funding framework that included funds for entrepreneurship, business expansion and façade improvements. Therefore, SLFRF funding and future Federal or State funds consistent with EOA objectives may support the implementation of EOA incentive programs.
The Plan is subject to revisions as circumstances may warrant over time and additional EOAs added in the future. A map of the seven areas is included as Attachment A.
2. Program Financing
When the private market does not provide sufficient capital and economic development activities to a specific area , public actions may be ne cessary to stimulate growth. This action can include public investments, capital improvements, enhanced public services, technical assistance, tax benefits, and other types of stimuli. Tax increment and PSVSPublic financing may serve as a mechanism to develop and encourage new business, enable existing business retention and expansion, and provide other economic development opportunities.
4 2.1. Qualified Applicants
The financial incentives are eligible for both for -profit businesses and tax-exempt entities .
Program applicants must also be legal businesses or tax-exempt entities located within or re- locating intowithin athe City of Bakersfielddesignated EOA.
2.2. Funding Sources
The City annually receives an allocation of property tax revenue from homeowners and businesses appropriated to the General Fund to support a variety of municipal services. Under this Plan, the incremental growth in property tax revenue derived from the EOAs would remain in those areas to help fund economic development activities.
To explain, the assessed property value in a defined area is “frozen” at a specific year, which is referred to as the base year. On an annual basis, all property tax revenue collected above the base year (tax increment) is applied toward meeting Plan’s priorities . The tax increment allocation is set for 15 years; after the expiration of the Plan, the remaining tax increment is re- directed back into the General Fund.
Ideally, the ongoing reinvestment of tax increment into a specific area assists in raising the assessed property values owned by non -exempt entities above where they would have been without such improvements. With higher values, property tax revenue naturally rises as well.
The tax increment funding amounts will be determined annually through the budget process.
Additional funding sources from the City’s general fund, per PSVS investment priorities, can also be included. Starting in fiscal year 19/20, for five years, each EOA area will be allocated an annual budget of $100,000 from PSVS funds. Prior to the end of the five year period, the City will evaluate the need to continue PSVS funding or if the property tax increment can support the EOA incentive programs. When available, tThe City also intends to utilize and leverage existing State, Federal, and other economic development fundprograms and to further enhance revitalization.
All funds will be allocated as part of the annual budget process.
To respond to the negative impacts of the Covid-19 pandemic, SLFRF funds will be used to assist small businesses in qualified census tracts, see Attachment J - Map of Qualified Census Tracts.
2.3. Tax Increment Financing Example
Assume that upon designation as an EOA, th e area generated $500,000 in annual property tax revenue to the City in the preceding fiscal year, which now becomes the base year. After being designated as an EOA, the area now generates $522,000 in property tax revenue to the City. The difference in property tax revenue between the base year ($500,000) and Year 2 ($22,000) is the tax increment. After 10 years, the EOA now generates $590,000 in property tax revenue, which equates to $90,000 in tax increment. See Figure 1.
5 Figure 1: Tax Increment Financing Example
3. Economic Opportunity Areas
Seven EOAs are included for implementation. The areas are: (1) Downtown Bakersfield EOA, (2) Bakersfield South Hwy 58/ Airport EOA, (3) Highway 58/Mt. VernonHwy 99 Corridor EOA, (4) 34th Street Corridor EOA, (5) East Hills EOA, (6) Old Town Kern EOA; and (7) Southeast EOA. The areas selected, as depicted on Attachment A , were based on their need for supplemental economic development activities.
The selected areas predominantly include property zoned for commercial and industrial uses, which are uses that contain business and economic growth opportunities.
The purpose of this Plan is to develop and encourage new business, promote existing business retention and expansion, support non-profits and provide other economic development opportunities with funds allocated toward economic development activities that include and support the following:
Support Existing Development with rehabilitation and renovation of buildings, site and landscape enhancements, and related development fees.
Support Future Development with demolition, site preparation, and property acquisition. Support Business Growth and Expansion with costs to start-up new businesses or existing businesses that want to expand.
Support New and Existing Development: Infill, r ehabilitation and renovation of buildings , demolition and site preparation, and property acquisition
$440,000k
$460,000k
$480,000k
$500,000k
$520,000k
$540,000k
$560,000k
$580,000k
$600,000k
Tax Increment
Property Tax (Base Year)
6 Infrastructure Improvements: Upgrades to storm drains, streets and alleys, curb and gutter, and landscape enhancements
Financial Incentives : Loans, grants, and development fee and public improvement reimbursements
The following sections contain a description of each of the seven EOAs and the potential investment opportunities within each EOA.
3.1. Downtown Economic Opportunity Area
The Downtown Bakersfield EOA is located inis in the heart of the city and characterized as the central business district. The area profile includes:
Figure 2: Downtown Bakersfield EOA – Area Profile
Area Size: 970 Acres
No. of Parcels: 1,668 Parcels
Primary Zoning: Residential, Commercial,
Manufacturing, & Mixed-Use
Assessed Property Valuation (2014): $620,840,799.00
Property Tax Revenue (2014): $1,140,923.69
Property Tax Revenue (2015): $1,184,932.21
Property Tax Revenue (2016): $1,144,901.76
Property Tax Revenue (2017): $1,144,901.78
Property Tax Revenue (2018): $1,196,560.42
Property Tax Revenue (2019): $1,206,941.96
Total Tax Increment Revenue (FY 2014 – FY 2019): $66,018.27 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $266,018.27
Investment Opportunities
Downtown Bakersfield has historically served as a center of civic and business activity and, but has suffered over time from the relocation of major retail businesses to more suburban locations. In recent years, however, Downtown Bakersfield has begun to experience a resurgence and becoming a focal point for the arts, entertainment, dining, and speci alty retailing.
The City has invested substantially in a number ofseveral new affordable housing developments in the downtown area. The continuing revitalization of downtown has started to create new interest in market rate housing opportunities . Despite these encouraging successes, the downtown area continues to contain a considerable amount of vacant and underutilized properties.
7 The emphasis for investment in the Downtown Bakersfield EOA is based on continuing to build on past successes and encourage c ontinuing revitalization by physically enhancing the public realm and encouraging investment in upgrading and renovating existing buildings and properties. Potential economic development activities include:
Improve pedestrian connectivity (e.g., sidewalks, park benches) Enhance visual characteristics (e.g., stamped concrete, kiosks) Promote the arts and shopping district (e.g., street banner program) Beautify medians and islands (e.g., install synthetic turf or pavers) Implement Making Downtown Bakersfield Vision plan projects Promote high-density residential development
3.2. South Hwy 58/Airport Economic Opportunity Area
The South Hwy 58/ Airport EOA is located in is in Southeast Bakersfield, andBakersfield and is anchored by the Bakersfield Municipal Airport and the historic Union Avenue Corridor. , The Airport iswhich is a City-owned and operated 190-acre general aviation airport. The area profile includes:
Figure 3: Airport EOA – Area Profile
Area Size: 929 Acres
No. of Parcels: 209 Parcels
Primary Zoning: Industrial, Manufacturing
Assessed Property Valuation (2014): $74,128,871.00
Property Tax Revenue (2014): $131,855.79
Property Tax Revenue (2015): $135,710.43
Property Tax Revenue (2016): $137,029.51
Property Tax Revenue (2017): $137,029.51
Property Tax Revenue (2018): $141,739.84
Property Tax Revenue (2019): $141,643.72
Total Tax Increment Revenue (FY 2014 – FY 2019): $9,787.93 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $109,787,93
Investment Opportunities
A majority of the South Hwy 58/ Airport EOA area is lightly developed, and existing land use designations support warehousing and other storageindustrial and commercial uses. The main commercial corridors are Union Avenue, South Chester Avenue and Martin Luther King Jr. Blvd.
The EOA area, east of Union Avenue south of White Lane consists of lightly developed or vacant land. SAdditionally, significant portions of land north and south of the airport have development
8 constraints due to the airport’s flight pattern. Acceptable uses in the area affected by the flight pattern include warehousing, two-story offices, and single-family homes on existing residential lots. Unacceptable uses include retail, manufacturing, hotels and motels, and residential subdivisions.
The South 58 Hwy/ Airport EOA offers excellent opportunities to develop into an industrial cluster, especially for businesses that require sizeable amounts of land. There is also the opportunity to support business expansion and growth along the three main commercial corridors. There will be a noticeable benefit in allocating initial tax increment public funds toward filling vacant structures and infilling undeveloped properties.
The potential economic development activities here include, but are not limited to:
Incentives to fill vacant buildingsbuildings.
Incentives to develop vacant landland.
Environmental remediation and site preparation
3.3. Highway 58/Mt. Vernon 99 Corridor Opportunity Area The Highway 58/Mt. Vernon99 Corridor EOA is located in Central Southeast Bakersfield, and allows for various industrial or commercial development. The area profile includes:
Figure 4: Highway 58/Mt. Vernon EOA – Area Profile
Area Size: 1,079 Acres
No. of Parcels: 175 Parcels
Primary Zoning: ManufacturingCommercial
Assessed Property Valuation (2014): $143,512,576.00
Property Tax Revenue (2014): $182,552.29
Property Tax Revenue (2015): $187,304.59
Property Tax Revenue (2016): $189,513.72
Property Tax Revenue (2017): $189,513.72
Property Tax Revenue (2018): $206,093.12
Property Tax Revenue (2019): $198,156.36
Total Tax Increment Revenue (FY 2014 – FY 2019): $15,604.76 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $215,604.07
Investment Opportunities
This area benefits from close proximityproximity to the Highway 5899, with the main access points to the City at several interchanges at Cottonwood Road, Mt. Vernon Avenue, and Oswell Street. The planned Centennial Corridor Project will enhance connections to Highway 58 and the to the Westside Parkway , with access to Interstate 5, thereby, enhancing this area to
9 businesses that rely on convenient freeway access and to trans -state and cross -country markets. Potential economic development activities include:
Incentives to develop vacant land
Incentives to fill vacant buildings
Environmental remediation and site preparation
3.4. 34th Street Corridor Opportunity Area
The 34th Street Corridor EOA is located just north of the heart of the City with t he primary economic focus and driver of this area being Dignity Health Memorial Hospital. The area profile includes:
Figure 5: 34th Street Corridor EOA – Area Profile
Area Size: 459 Acres
No. of Parcels: 965 Parcels
Primary Zoning: Commercial, Manufacturing,
Residential, Recreation
Assessed Property Valuation (2014): $229,940,836.00
Property Tax Revenue (2014): $419,460.44
Property Tax Revenue (2015): $440,872.59
Property Tax Revenue (2016): $456,770.27
Property Tax Revenue (2017): $456,770.28
Property Tax Revenue (2018): $483,326.32
Property Tax Revenue (2019): $479,793.77
Total Tax Increment Revenue (FY 2014 – FY 2019): $60,333.33 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $260,333.33
Investment Opportunities
Memorial Hospital has experienced significant growth and expansion of its own facilities in recent years, and in turn the hospital’s growth has created a market and need for medical offices and other uses related to the medical field . Memorial Hospital has also invested its own resources in adding streetscape features along 34th Street from Q Street to Union Avenue and has expressed int erest in undertaking similar improvements west to Chester Avenue. Beyond Memorial Hospital and its ancillary facilities, the remainder of the area continues to be economically depressed. The commercial and manufacturing-zoned land further away from the hospital includes many parcels that are vacant, abandoned, and/or support dilapidated buildings. Some of the residentially zoned and developed land in close proximity to near the commercial/ manufacturing areas may be ripe for transition . It is anticipated,anticipated that the large majority of the residential areas that make up a good part of this area will continue to remain. For those residential areas, there is an interest in strengthening the quality of the
10 housing to better support and enhance the overall image of the area as a major medical/health care center. Potential economic development activities include:
Improve pedestrian connectivity (e.g., sidewalks, park benches) Enhance security (e.g., lighting upgrades)
Beautify medians and islands (e.g., install synthetic turf or pavers)
3.5. East Hills Opportunity Area
The East Hills EOA is located in the east Bakersfield area and centered on the East Hills Mall. The area profile includes:
Figure 6: East Hills EOA – Area Profile
Area Size: 438 Acres
No. of Parcels: 236 Parcels
Primary Zoning: Commercial
Assessed Property Valuation (2014): $267,832,267.00
Property Tax Revenue (2014): $492,599.73
Property Tax Revenue (2015): $503,813.16
Property Tax Revenue (2016): $556,469.00
Property Tax Revenue (2017): $556,469.01
Property Tax Revenue (2018): $565,690.48
Property Tax Revenue (2019): $593,983.38
Total Tax Increment Revenue (FY 2014 – FY 2019): $101,383.65 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $301,383.65
Investment Opportunities
From its opening in 1988, the East Hills Mall has struggled to reach full capacity, and more recently, has suffered through foreclosure and the loss of three anchor stores . Although there has been renewed interest by investors, it remains a low performing location. Traffic circulation in the area can be a challenge. Potential economic development activities include:
Incentives to fill vacant buildings
Incentives to develop vacant land
3.6. Old Town Kern Opportunity Area
The Old Town Kern EOA is located east of Downtown. It is diverse community in a historical center of Bakersfield and possesses great potential for revitalization. The area profile includes:
11 Figure 7: Old Town Kern EOA – Area Profile
Area Size: 586 Acres
No. of Parcels: 1,820 Parcels
Primary Zoning: Manufacturing, Commercial,
Residential
Assessed Property Valuation (2014): $216,437,337.00
Property Tax Revenue (2014): $397,192.46
Property Tax Revenue (2015): $423,337.26
Property Tax Revenue (2016): $426,588.08
Property Tax Revenue (2017): $426,588.08
Property Tax Revenue (2018): $459,480.92
Property Tax Revenue (2019): $480,372.85
Total Tax Increment Revenue (FY 2014 – FY 2019): $83,180.39 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $283,180.39
Investment Opportunities
While the area is economically distressed, it has a number ofa few buildings and sites that reflect the rich history of the area. Because of the Railroad and the availability of social service providers, the area is beenhas been known for a high concentration of transients. The lack of private investments into the area has deteriorated over the years; however, it is also one of the few neighborhoods in Bakersfield, where residential neighborhoods are adjacent to commercial businesses making for a great community atmosphere. Potential economic development activities include:
Improve pedestrian connectivity (e.g., sidewalks, park benches) Enhance visual characteristics (e.g., stamped concrete, kiosks) Enhance security (e.g., lighting upgrades)
Beautify medians and islands (e.g., install synthetic turf or pavers) Promote high-density residential development.
3.7. Southeast Opportunity Area
The Southeast EOA is located south of Downtown. It is an area developed with residential and commercial corridors. The area profile includes:
Figure 8: Southeast EOA – Area Profile
Area Size: 1,409 Acres
No. of Parcels: 5,774 Parcels
Primary Zoning: Residential, Commercial
Assessed Property Valuation (2014): $337,217,804.00
Property Tax Revenue (2014): $579,900.26
12 Property Tax Revenue (2015): $596,699.55
Property Tax Revenue (2016): $643,633.92
Property Tax Revenue (2017): $643,633.93
Property Tax Revenue (2018): $695,169.12
Property Tax Revenue (2019): $731,315.70
Total Tax Increment Revenue (FY 2014 – FY 2019): $151,415.44 PSVS Fiscal Year 19-20: $100,000.00
PSVS Fiscal Year 20-21: $100,000.00
Total Implementation Funding (FY 20/21): $351,415.44
Investment Opportunities
The area is historically residential neighborhoods with two north -south commercial corridors down Chester and Union Avenues, and California Avenue along the northern edge. There has been limited economic growth in the area and future growth would require redevelopment and infill of vacant parcels. The a rterial streets in the area carry high vehicle speeds with a limited number of controlled intersections and pedestrian amenities ( i.e.i.e., trees, benches, streetlights, etc.) However, the mix of residential neighborhoods, commercial uses, and existing street network create opportunities for improved business activity by investing into amenities and facilities that create a more pedestrian -friendly environment. In turn, these investments can stimulate economic opportunity in the area. Potential economic deve lopment activities include:
Potential economic development activities include:
Improve pedestrian connectivity (e.g., sidewalks, park benches) Enhance visual characteristics (e.g., stamped concrete, kiosks) Enhance security (e.g., lighting upgrades)
Beautify medians and islands (e.g., install synthetic turf or pavers)
4. Financial Incentives
For the purposes of this Plan, financial incentives may include the following:
4.1. Site Improvement/Rehabilitation Grant
The site improvement and rehabilitation grants can provide financial assistance for the following activities. Priority will be given to existing vacant or underutilized structures to new u ses or to revitalize previous uses:
Facade Improvements: Investments in exterior building improvements (e.g., paint, awnings, doors, windows, lighting)
Site Enhancement s: Investments in non -structural improvements (e.g., sidewa lk, parking lots, landscaping)
13 Tenant Improvements: Construct interior building improvements
4.2. Business Relocation/Expansion Grant
The rehabilitation grant can provide financial assistance for business expansion and relocation activities:
Relocation and Expansion: Financial assistance for companies businesses to relocate to an EOA area and fund eligible relocation expenses. Note: this is an incentive and is separate from the requirements of the Uniform Relocation Assistance and Real Properties Acquisition Policies Act or the California Relocation Act.
Rent/Lease Reimbursement: Financial assistance for new businesses to reloc ate to an EOA area. Assistance includes a rent reimbursement to assist businesses during the critical first year of operation.
4.3. Development Assistance
Reimburse Development Fees. Reimburse development fees for high-density residential (30 or more dwelling units/acre) and a commercial redevelopment or reuse of a vacan t or underutilizedbusiness to relocate to an EOA area, or expand or change use of the existing building. Fee categories that may qualify include transportation impact fee, building permit fee, water and sewer connection fee, and planning/land use fee.
Infrastructure Reimbursement. To help incentivize economic development the City will reimburse the costs of capital and public improvement projects within each EOA area. The reimbursements will be for making public infrastructure improvements while developing new residential, commercial, or mixed use projects. Eligible public infrastructure improvements can include sewer, water, storm drain, street improvements, including sidewalks, crosswalks, bike lanes, striping, medians, traffic signals, streetlights, and landscaping.
TIF Financing . Using the anticipated increase in property value resulting from redevelopment of a site and estimated property tax increase, the developer can borrow against the future, incremental property value of a project for up to 15 years to help fund part of the project’s cost . The developer must secure a loan from a bank or other private lender in an amount up to the approved TIF amount. With the project site TIF funds, the City will pay the annual debt service on the loan.
4.4. Small Business Loans
Establish a loan program with a non-profit partner or lending institution to offer small business loans and assistance in EOA areas to assist site improvement and rehabilitation grant applicants. including but not limited to: operating capital (inc luding license and permit fees); f urniture, fixtures and equipment; and infrastructure d evelopment. Potential partners can include SCORE, Small Business Development Centers, Women’s Business Centers, Minority Business Development Centers , Local Initiatives Support Corporation, Kiva and other potential lending organizations.
Commented [CG1]: Recommending removing because
infrastructure costs are too high.
Commented [CG2]: Consulting with financial institutions to provide small business loans.
14 5. Implementation Strategy
5.1. Resolution Approving the Economic Opportunity Areas
In order to To provide City Council flexibility to amend the EOAs in the future , a separate resolution establishes each EOA. The resolution describes the concepts related to establishing the EOAs, as follows:
Boundary: The boundary includes whole parcels as they appear on the assessment roll.
Creation Date: The revised base year for the EOAs will be July 1, 20194. The duration of the EOAs will not exceed an initial term of 15 years; at which time, City Council may extend the duration the program for a specified number of years, oryears or dissolve the EOA.
Name: The EOAs named to reflect the general locations and provide a branded identify.
List of Economic Development Activities: Provide a general list of authorized economic development activities for each EOA.
Tax Increment Designation: Designate future tax increment received from property tax revenue in the prescribed boundary toward economic development activities.
Minimum and Maximum Tax Increment: Establish minimum and maximum amounts of tax increment designated annually toward economic development activities. To ensure viability of the program, a minimum of $100,000 and a maximum of $250,000 dedicated to each EOA in a fiscal year, regardless of the actual amount of increment that accrued during the same year.
Tax Increment Financing Funds: Property tax revenue above the amount derived to the City in the established base year will be identified and accounted for annually and will be budgeted specifically for programs identified in the Plan.
Economic Hardship: The City may suspend dedicating funds to an EOA if the City is facing or forecasting an economic hardship to the General Fund. This action is subject to City Council approval.
All EOA Fund: In some fiscal years, the demand for EOA funding is greater, therefore a n general PSVall Fund will be established for all EOAs . Grants and other incentives will be awarded based on demand from eligible applications.
5.2. Program Implementation EOA Program Guidelines
Figure 8 includes action item s for implementation of development assistance, grant s, and business loan programs.
EOA Program Timeline
15 Figure 9: Implementation Timeline
November 2018 Passage of PSVS Measure and activation of EOAs July 2019 City Council adoption of revised EOA Plan
Completed Finalize program guidelines & grant agreement template Summer 2021 Coordinate with community or non-profit partners for small business loan services
Completed Send out Notice for Funding Availability (Grants/Development Assistance)
Winter 2021 Approve agreement with small business loan community partner On-going Grants/Assistance awarded on a per project basis
EOA Program Guidelines
Comprehensive program guidelines will include a description of financial incentive options and well as detailed guidelines that will establish program criteria, eligibilityeligibility, and application guidelines. The grants and development other financial assistance will require agreement templates, reporting for monitoring projects and an established annual funding cycle for each fiscal year with proposed grant and threshold amounts based on approved funds allocated during each annual budget cycle. To be eligible for EOA program grants and loans you must be an existing legal busines s or non -profit located within or re-locating to a designated EOAwithin the City of Bakersfield.
The SLFRF fund s will be available to small businesses and non -profits that are operating in qualified census tracts and were disproportionately impacted by the pandemic.
Per CA Government Code 53083, the EOA program will follow the requirements for cities funding an “economic development subsidy,” which is any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee wa ivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.
For the Small Business Loan Program, the City will coordinate with a community or non -profit lending institution to provide small business loans and assistance. These partners would provide the capital and financing for business loans that meet the following criteria:
The existing business must create one or more new permanent full time equivalent (FTE) jobs, based on loan amount.
Funds can be used to finance any legitimate business expense (equipment, fixtures and furniture, working capital, construction, tenant improvements, etc.)
16 5.3. California Prevailing Wage
Prevailing wages must be paid to all workers employed on public works projects, as defined by the Califor nia Labor Code. For construction, alteration, demolition, and repair projects, prevailing wages are not required to be paid for projects of $25,000 or less, or $15,000 or less when the project is maintenance work Prevailing wages must be pa id to all workers employed on public works project s, as defined by California Labor Code. For construction projects, prevailing wages are not required to be paid for project s of $25,000 or less, or $15,000 or less when the project is for alteration, demolition, repair, or maintenance work.
5.4. Approval of Economic Development Activities
For any request for a disbursement of City funds related to this plan that exceeds $25,000 (cumulative for each project) , will be brought to the City Council for review and action . For requests of $ 25,000 or less, the proposal will be reviewed and acted upon administratively based on consistency with stated priorities for the EOA area.
5.5. Continual Transparency
The City Council will review the Plan’s accomplishments during the annual budgetary process.
Administrative guidelines will be developed to establish more detailed procedures for day -to- day implementation of the Plan. Through this process, the City Council may set additional policy and direction related to the Plan. The economic development activities shall be presented in broad categories in order to have the flexibility in meeting business demands. In addition, the City Council may request revisions to the Plan’s priorities anytime through the referral process.
A change to the Plan’s priorities will require Council approval.